Thursday, February 11, 2010

Deficit Spending - Cause & Cure V2.0

“under current law, federal spending on Medicare and Medicaid measured as a share of GDP will rise from 4 percent today to 12 percent in 2050 and 19 percent in 2082—which, as a share of the economy, is roughly equivalent to the total amount that the federal government spends today…

Federal spending on programs other than Medicare, Medicaid, and Social Security—including national defense and a wide variety of domestic programs—is likely to contribute far less, if anything, to the upward trend in federal outlays as a share of GDP.”

"The enormous sums committed to mandatory federal programs such as Social Security, Medicare and Medicaid dwarf all other aspects of the budget. Left unchecked for a decade or two, they will consume a larger share of the nation's GDP than all our federal programs today combined. Coupled with increasing interest payments on the government's rising debt, they will either force up taxes or produce dangerous deficits."

From the Congressional Budget OfficeClick the image to learn more:

From Heritage.orgClick the image to learn more:

The Cure(Hint: Higher taxes will NOT solve the problem.)

Higher income taxes will NOT produce higher revenues.Click the image to learn more: